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Newsom’s Proposed Vape Tax ‘Reasonable,’ California Adviser Says

Feb. 24, 2020, 11:39 PM

California Gov. Gavin Newsom’s proposal to tax e-cigarettes based on their nicotine content is “reasonable” and is likely to raise tens of millions of dollars annually, the state legislature’s fiscal and policy analyst said on Monday.

The vape tax of about $1 for every 20 milligrams of nicotine is better than a price-based or volume-based tax because nicotine concentrations vary in products of the same volume, the Legislative Analyst’s Office said in a report. As an example, Newsom’s proposal would result in a $5 tax on a four-pack of 3% nicotine JUUL pods.

The new levy, to be imposed on ...